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Mortgage pre-approval letter with no credit check, etc. Archived From: Finance

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   posted: Apr. 30, 2008 @ 8:35p
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Is it unusual to receive a pre-approval letter from a broker without first submitting personal info ie, ss#, employment verification, account balances, etc? Even a pre-qualification letter requires ss# to check credit report.

Is the broker simply putting off doing all the 'work' until a contract is written up? Anyone experience this before? It would be extremely embarrassing (and not to mention, a waste of time to the buyer and seller) to make an offer only to find out later that you can't get loan approval because the broker didn't run your info first.

Thanks,
roboson

   posted: Apr. 30, 2008 @ 8:35p

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   posted: Apr. 30, 2008 @ 8:55p
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Try the mortgage forum at creditboards. Maybe some of the brokers there can give you some info.

   posted: Apr. 30, 2008 @ 9:15p
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There is also a difference between pre-approval and pre-qualify...what did you get?

In the Mortgage business pre-qualify and pre-approval letters mean absolutely nothing. What is odd is in California and I am assuming other areas as well during the housing boom a Realtor would not see a respective buyer unless the buyer was "pre-qualified". On the mortgage side we actually would just glance at the mid FICO, print out a template letter and say congratulation's. We used these letters more as a sales gimmick to make the perspective buyer think we had a loan reserved for them. It was a running joke that only the new and inexperienced Realtors cared about these letters. The seasoned veterans understand that the letter was worthless.

   posted: May. 1, 2008 @ 10:31a
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Guess it kinda depends. Ultimately it's up to the lender to determine, but on the broker's end they can have you preapproved running your case through an AUS (automated underwriting system). Since that's not the case here, I'd assume that it's comparable to a pre approved auto loan offer which is subject to two pages of fine print.

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